Discovery studies Maun underground copper mine

BRAIN BENZA
Staff Writer | Tuesday March 30, 2010 00:00

'The positive results of this study are very encouraging. The study shows that a Zeta underground mine has the potential to add significant value to shareholders through increased operational flexibility and optionality in relation to the copper price, production volumes and extensions to mine life,' said DML managing director Brad Sampson in a statement.

In addition, the scoping study has shown that the mine has a 'very low' incremental development capital cost with attendant scope for rapid payback, Sampson added.

'We envisage that the Zeta underground proposal will improve in the future because at this stage the scoping study manager has used conservative estimates throughout. We will refine the grade and cost information as we proceed further with underground studies at Zeta and other areas at Boseto.' A pre-feasibility study for the Zeta underground project has started, and is scheduled for completion during September this year.

The study will examine scenarios, which involve integration with the opencast mining operations currently employed at the Boseto project.DML, which is also listed on Aim and   the Australian  Stock Exchange  (ASE), said in a statement that the scoping study had estimated an underground mineral resource of around 25 million tons, at 1,4 percent copper with an average base case core production of around 1,2-million tons, over an eight-year life-of mine, for a yearly production of 15, 300  tonnes  of copper, and 480, 000 ounces of  silver.The underground mine scoping study has progressed in parallel with the Boseto copper project bankable feasibility study (BFS). The completion and start of the progressive release of the results of this BFS were imminent.

The BFS is appropriately based on starting production at Boseto solely through opencast mining with the vast majority of exploration, engineering and expenditure on Boseto to date undertaken to support the opencast project.

A substantial quantity of mineralisation is expected to be available to these mining methods over the 1, 300km strike of prospective ground in DML's prospecting licences in Northwest Botswana.